Sydney, Australia, July 28, 2011 - (ABN Newswire) - Focus Minerals
Limited (ASX:FML), an Australian gold producer, announced today the
discovery of a new gold camp at the Company's 100% owned Treasure
Island Gold Project, 35km south-south east along strike from the major
gold camp of St Ives at Kambalda in Western Australia's Eastern
Goldfields.

An inaugural 23 hole drilling program has shown the high-grade
mineralised vein structures mapped on the island extend at depth under
the salt lake, with more than 50% of the significant intercepts over
10g/t.

Fine visible gold has been seen in most mineralised veins with the
discovery of multiple new vein systems under the lake and some veins
from the island showing greater width at depth.

"We are clearly dealing with an extensive mineralised system
of a style that is very similar to that seen at the St Ives gold camp
which has produced between 400,000 to 500,000oz of gold per annum for
the last ten years," said Focus Chief Executive Officer Campbell
Baird.

"The results over 1km of strike are delivering exceptionally
high grade intercepts with new and existing mineralised veins appearing
to be open in all directions.

"There are not many other places in the Goldfields today where
anyone is finding these kinds of grades on the surface and at depth, so
we are very buoyed by this first round of results. We are only just
beginning to understand the potential in this region."

Mr Baird said the drilling program at Treasure Island was now
focusing on stepping out from the first holes and looking at other
prospects across the lake with the mobilisation of a lake aircore rig
that has commenced a +10,000 metre programme along a 6km strike of
favourable geology.

The Treasure Island Gold Project, comprises 226km2 of tenements
situated on Lake Cowan. The initial drill programme has seen a lake
diamond drill rig complete 23 holes for 3,165m at the Black Dog and
Blind Pew prospects, with drilling conducted from the lake bed.

The drilling at Black Dog intersected mineralised quartz veins with
fine visible gold and associated disseminated and blebby sulphides
(mainly pyrrhotite). The most recent holes drilled at Blind Pew to the
south have also shown an increased level of silicification and albite alteration, with the abundance of disseminated sulphides increasing. The
presence and increase of silicification and albite alteration, in
association with the increase in blebby sulphides, is extremely
encouraging as this style of alteration is very important throughout the
Goldfields region as it normally indicates a more highly prospective
part of a mineralised gold system.

This style of mineralisation identified at Treasure Island is very
similar to the St Ives style of gold mineralisation at Kambalda.

The drilling at Black Dog and Blind Pew has also intersected
multiple, previously unknown, mineralised vein structures under the
lake. The down hole widths of the mineralised veins are almost true
widths. The widths of mineralised veins being intersected in the
drilling at depth is extremely encouraging as they are much wider than
the veins mapped on the island.

Additionally, one hole at Black Dog has also intersected a
lamprophyre. This is a very important and exciting piece of the puzzle
at Treasure Island as lamprophyres are an intrusive rock that are
commonly associated with lode gold deposits in Archaean terranes around
the world. In the Yilgarn terrane in Western Australia (which includes
the Goldfields), lamprophyres are found at many high-grade, million
ounce plus deposits.

Focus is beginning to open up an exciting new gold camp at its
Treasure Island Gold project. Diamond drilling will continue
aggressively, and has now been joined by a lake aircore rig which has
already commenced drilling favourable geology and geophysical targets
along a 6km strike. This will enable Focus to start to accelerate the
early phase of exploration at this newly discovered gold system and
start to unlock a 15km2 area around the island.

BACKGROUND ON THE TREASURE ISLAND GOLD PROJECT EXPLORATION
PROGRAMME

The initial mapping conducted late 2010 and early 2011 on Treasure
Island identified a granophyric horizon in a dolerite/gabbro package of
rocks, which indicated an environment with the right rock types, similar
to that found further north in the belt at Kambalda and Kalgoorlie. A
granophyric zone contains a lot of iron which acts as an excellent
chemical trap for gold bearing fluids. The mapping also highlighted a
series of quartz vein systems, some unmineralised and some mineralised
with fine gold which indicated that rich gold bearing fluids had moved
through the area.

The aeromagnetic survey flown in 2010 identified the major
structures, including the regional Boulder-Lefroy Fault. The geophysics
highlighted the structural complexity of the area with a number of
demagnetised "dead zones", where magnetite in the rock has
been destroyed by chemical reactions from a potential gold bearing fluid
moving through the rock package which is another ideal trap for gold.

A combination of the mapping and geophysics highlighted an
important aspect where the geological orientation over a 6km strike
length is 25 degree different to the regional grain, producing an ideal
setting for dilational zones to form within favourable stratigraphy (the
granophyric zone) into which gold bearing fluids can migrate and be
deposited. This resulted in numerous targets being identified along this
6km strike length at Treasure Island.

This work showed that Treasure Island had the right geology (the
granophyric zone), a change in geological orientation and major
structural features like the Boulder-Lefroy Fault with a lot of evidence
of multiple fault splays coming off the Boulder-Lefroy Fault as well as
tremendous surface evidence of the gold bearing quartz veins on the
Island (see ASX releases dated 1st November 2010, 25th November2010
& 4th March 2011).

For the complete Focus Minerals Limited announcement including
figures and tables, please refer to the following link:

http://media.abnnewswire.net/media/en/docs/ASX-FML-550761.pdf

About Focus Minerals Ltd:

Focus Minerals Ltd (ASX:FML) is an Australian-based exploration and
development group whose focus is to become a significant gold and nickel
producer in the Coolgardie-Kalgoorlie-Widgiemooltha region of Western
Australia.

Focus Minerals is the largest landholder in the Coolgardie Gold
Belt located in Western Australia, 560km east of Perth and 35km west of
the 'Super Pit' in Kalgoorlie-Boulder. More than 2.6 million
ounces of gold has been produced from the Coolgardie gold belt alone
since 1892. Focus holds the mineral rights to more than 210sq km of
tenements including an extensive inventory of Measured, Indicated and
Inferred gold resources as well as the 1.2mtpa Three Mile Hill
processing plant.

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